Turkish lira rebounds after Qatar pledges $15 billion

Turkish lira rebounds after Qatar pledges $15 billion

ANKARA

The Turkish lira is rebounding after Qatar pledged US$15 billion in investments to help Turkey’s economy.

The currency strengthened some 3 percent against the dollar on Aug. 16, trading at around 5.75 per dollar, hours before Turkey’s treasury and finance minister were scheduled to reassure international investors about the economy.

The lira had nosedived in recent weeks, hitting 7.24 last week, amid a diplomatic and trade dispute with the United States.

Washington imposed sanctions and tariffs over the continued detention of an American pastor, while Turkey retaliated with some $500 million of tariffs on some U.S. imports and said it would boycott U.S. electronic goods.

The currency recovered after authorities took steps to help bank liquidity and limit swap transactions.